WEBVTT
SOLEDAD: EVEN BEFORE HE TAKES
OFFICE, PRESIDENT-ELECT DONALD
TRUMP IS CROWING ABOUT H
ABILITY TO BRING AMERICAN JOBS
BACK.
IN A DEAL WITH UNITED
TECHNOLOGIES, THE PARENT COMPANY
OF CARRIER, TRUMP ANNOUNCED 11
JOBS AT THEIR INDIANA FACTORY
WILL NOT MOVE TO MEXICO.
IN EXCHANGE, THE COMPANY WILL
RECEIVE $7 MILLION IN TAX
CREDITS AND TRAINING
GRANTS OVER THE NEXT 10 YEARS.
WHILE IT'S GREAT NEWS FO
WORKERS WHOSE JOBS WERE SAVED
THE 1100 NUMBER IS MISLEADING.
, IT'S MORE LIKE 800 JOBS THAT
WILL REMAIN.
APPROXIMATELY 550 UNION JOBS
WILL STILL GO TO MEXICO.
300 MORE JOBS WERE NEVER
SCHEDULED TO LEAVE.
AND A SECOND UNITED TECHNOLOGIES
PLANT IN HUNTINGTON IS CLOSING,
AND IT IS MOVING 700 JOBS TO
MEXICO
JAMES PETHOKOUKIS IS
ECONOMIST AT THE CONSERVATIVE
AMERICAN UNDERPRICED INSTITUTE
AND HE HAS CALLED THIS DEAL
, CHILLING.
NICE TO HAVE YOU WITH US.
JAMES: I APPRECIATE IT.
SOLEDAD: SO THE RESPONSES HA
BEEN DIVIDED BETWEEN PEOPLE THAT
WE CHEERING HEY, JOBS WERE
, SAVED, AND IF YOU ARE ONE OF
THE 730 TO 800 PEOPLE WHOSE JOBS
WERE SAVED THERE, TO OTHE
-- THAT IS AN AMAZING THING TO
, OTHERS BEMOANING THE WAY THIS
WAS DONE.
WHERE DO YOU STAND ON IT?
JAMES: I'M CONCERNED.
I WANT MAKE COMPANIES MAKING
DECISIONS BASED ON WHAT IS BEST
FOR THEIR CUSTOMERS AND THEIR
SHAREHOLDERS, AND OVER THE LONG
TERM, WHAT IS BEST FOR THEIR
WORKERS.
WHAT I DON'T WANT IS BUSINESSES
MAKING DECISIONS ON THE WHIMS OF
POLITICIANS INCLUDING THE
, PRESIDENT OF THE UNITED
STATES.
THIS IS KIND OF A WEIRD
SITUATION WHERE WE HAVE A
BUSINESS TELEGRAPHING OR
SOMETIME THE ECONOMICS, AN TO
BE COMPETITIVE, THEY NEED TO BE
MAKING PRODUCTS SOMEWHERE ELSE
WHERE LABOR COSTS LESS, AND THEY
MADE THAT DECISION.
AND THE PRESIDENT DECIDED, YOU
KNOW WHAT, I KNOW BETTER, AND
YOU CAN MAKE THESE JOBS HERE,
MAYBE LESS PROFITABLE BUT YOU'LL
BE OK.
WE ELECTED HIM PRESIDENT, NOT
CHAIRMAN OF THE BOARD OF EVERY
COMPANY IN AMERICA
SOLEDAD: IT IS VERY HARD TO SPIN
SAVING JOBS AS A BAD THING.
JAMES IT'S THE JOB OF THE
: PRESIDENT TO TAKE A LONGER
VIEW.
IF THEY HAD MOVED SOMEWHERE IN
THE UNITED STATES, WOULD HE HAVE
SAVED THEIR JOBS?
WELL, MAYBE NOT.
WORKERS HAVE TO BE PREPARED.
THEIR JOBS MY GO OVERSEAS OR
ELSEWHERE.
FOR THE LONG TERM VIABILITY OF
CARRIER, THEY ARE OWNED BY
UNITED TECHNOLOGIES, WHICH HAS
GOVERNMENT CONTRACTS.
I'M SURE AT THE END OF THE DAY,
AND THE CEO IMPLIED THIS, IT W
LE ABOUT TAX BREAKS THEY GOT,
BUT THEY WERE WORRIED ABOUT
LOSING GOVERNMEN CONTRACTS.
IF THIS WAS A STANDALONE
COMPANY, CARRIER, WITHOUT A
WEALTHY CORPORATE PARENT, THEY
WOULD BE AT RISK.
SOLEDAD: HERE IS AN INTERESTING
QUOTE - "THE FREE MARKET IS
SORTING IT OUT AND AMERICA HAS
BEEN LOSING."
THAT IS FROM THE INCOMING VICE
PRESIDENT, MIKE PENCE.
I THOUGHT REPUBLICANS WERE ALL
ABOUT THE FREE MARKET AND FREE
ENTERPRISE.
I HAVE NOT REALLY A HEARD --
REALLY HEARD ELECTED OFFICIALS
ON GOP SIDE DECRYING WHAT THEY
ARE SEEING HAPPENING
JAMES: LISTEN, YOU KNOW, IT IS
THEIR PRESIDENT.
HE WON.
HE BEAT CLINTON.
THIS IS ONE OF THE FIRST BIG
THINGS HE HAS DONE EVEN THOUGH
, HE IS NOT PRESIDENT, HE IS THE
PRESIDENT-ELECT.
THE POLLS SAY THIS IS POPULAR.
AT THIS POINT THEY ARE GOING
WITH THEIR GUY AND WHAT THE
POLLS SAY.
THAT IS WRONG, WHAT PENCE SAID.
LISTEN WE HAVE HAD MORE OPEN
, TRADE OVER THE PAST 30 TO 40
YEARS.
THIS ECONOMY HAS CREATED 15
MILLION JOBS SINCE THE EARLY
1980'S
THE MARKET IS DOING JUST FINE.
BUT DOESN'T MEAN THERE WON'T BE
LOSERS OR PEOPLE LEFT BEHIND,
AND THE GOVERNMENT SHOULD HAVE
BEEN DOING MORE ALL THIS TIME TO
HELP PEOPLE WHO HAVE LOST THE
JOBS.
BUT FREE TRADE HAS BEEN GOOD FOR
AMERICA.
SOLEDAD: A WATER BILL PASSED IN
THE SENATE WITH PROVISION
ABOUT BUYING AMERICAN STEEL IN
IT THAT HOUSE REPUBLICANS
REMOVED.
NOW I AM REALLY CONFUSED ABOUT
WHAT REPUBLICANS WANT.
JAMES: REPUBLICAN PARTY, I
THINK, IS CONFUSED.
THAT'S WH
SOLEDAD: BUT TO SOM DEGREE, BUY
MAKING COMPANIES BUY AMERICAN
STEEL, IT SEEMS AGAIN REASONABLE
THING.
JAMES: BUT THEN YOU ARE
RAISING
COSTS FOR EVERY OTH COMPANY
THAT USES STEEL, AND SOLD THE
PRODUCTS ARE MORE EXPENSIVE.

Expert: Trump Carrier Deal a Poor Precedent

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Updated: 10:17 AM CST Dec 10, 2016

With inauguration just over a month away, President-elect Donald Trump is already touting his negotiating skills to keep American jobs on U.S.. Last week Trump announced that his deal with United Technologies, the parent company of Carrier, would ensure that 1,100 jobs at an Indianapolis, Indiana factory, would not be moving to Mexico. In exchange, the company will receive $7 million in tax credits over the next ten years. According to a recent poll by Politico/Morning Consult, 60 percent of voters say the Carrier deal gives them a more favorable view of Trump – including 87 percent of Republicans, 54 percent of independents and 40 percent of Democrats. Despite the popular reception among the voters polled, critics say this could set a dangerous precedent. Soledad O’Brien analyzes the economic implications of the deal with business analyst James Pethokoukis from the conservative American Enterprise Institute.